SlideShare a Scribd company logo
1 of 25
Download to read offline
Annual Report on Boulder Real Estate [House Einstein]
Market Research: Boulder
an analysis of real estate market conditions in
Boulder, Colorado
January, 2014

Sponsored by:
HOUSE EINSTEIN MARKET RESEARCH : JANUARY 2014

Legal
This presentation was prepared exclusively for the benefit and use of the Realty Unique clients to assist
their study of real estate market conditions. This presentation is for discussion purposes only and is
incomplete without an in-person, oral presentation by Realty Unique. This presentation reflects opinions of
prevailing market conditions on this date, which are subject to change. Realty Unique recommends
careful and complete due diligence before buying or selling real estate or other investments. The following
presentation is not to be construed as legal, tax, or investment advice. Realty Unique will not be held
liable for investment decisions derived from this presentation. Previous market performance is not a
guarantee of future results and there is financial risk associated with buying or selling property. Consult
with your financial, legal, and real estate advisers before making an investment decision. The data in this
presentation was obtained by private and public sources, without independent verification.

HouseEinstein.com

ph: 303 746 6896

3
“You can’t make a smart
real estate decision without
knowing the facts about
market conditions.”
- Osman Parvez, Founder
Realty Unique, LLC
HOUSE EINSTEIN MARKET RESEARCH : JANUARY 2014

About
Osman Parvez: Osman’s professional experience includes investment analysis, economic consulting, real
estate development and investment banking. Prior to Realty Unique, he served as an Equities Research
Associate for Kaufman Brothers, Research Director for Windwalker Real Estate, Associate Director for Capital
Markets at Republic Financial and co-founder of Silver Fern Homes. Outside of real estate and investing, he
loves being in the wilderness and has research experience studying the impacts of climate change. Osman
holds an MBA in finance, a B.S. in biology and is a Certified Negotiation Expert (CNE).
Email: osman@realtyunique.com ph: 303.746.6896

HouseEinstein.com

ph: 303 746 6896

5
HOUSE EINSTEIN MARKET RESEARCH : JANUARY 2014

A Note About The Data
The following slides represent
data from various sources, as
cited. Understanding the
limitations of each data source is
important.

Data from the Boulder Area
Realtor Association (BARA) is
based on the IRES MLS. This
MLS contains the majority of real
estate sales in Boulder, Longmont,
and Louisville but not in others,
where Metrolist has a large market
share.
The resulting potential error is
unacceptably large in areas like
Broomfield and Erie (see chart).
If you see other analyses on area
real estate conditions, confirm the
data source.
Please see An Open Letter to
BARA.

HouseEinstein.com

ph: 303 746 6896

6
HOUSE EINSTEIN MARKET RESEARCH : JANUARY 2014

Market Conditions
Regional Overview

HouseEinstein.com

ph: 303 746 6896

7
Regional Summary

HOUSE EINSTEIN MARKET RESEARCH : JANUARY 2014

•

•

Inventory remains at record low levels throughout the region. Longmont, Boulder, and Boulder
Attached Dwellings (AD) are experiencing about the same level of shortage.
Months of Inventory, a metric based on sales volume relative to inventory, shows unbelievably low
levels of inventory in Louisville and Superior. Experts believe about six months of inventory is
normal in a healthy market.
The new regional summary excludes Erie, Mountains, and Plains due to incomplete data from BARA.

December

YoY
% Chg

MoM
% Change

Absorption
(Sold/Inv**)

December

YoY
% Chg

MoM
% Change

Boulder
Boulder AD
Lafayette
Longmont
Louisville
Superior

123
125
54
173
20
15

(25.5)%
(23.8)%
8.0 %
(24.1)%
(4.8)%
(16.7)%

(26.3)%
(17.8)%
(14.3)%
(21.7)%
(37.5)%
(21.1)%

Boulder
Boulder AD
Lafayette
Longmont
Louisville
Superior

28.1%
26.3%
22.2%
28.1%
46.9%
47.4%

16.9 %
19.6 %
(28.7)%
32.3 %
9.4 %
82.7 %

34.9 %
27.6 %
(23.8)%
(10.0)%
31.3 %
31.6 %

Sold Volume

December

YoY
% Chg

MoM
% Change

Prev. Month

3 Mo. Avg

Boulder
Boulder AD
Lafayette
Longmont
Louisville
Superior

47
40
14
62
15
9

(9.6)%
(9.1)%
(26.3)%
10.7 %
(16.7)%
28.6 %

20.5 %
21.2 %
(33.3)%
(27.9)%
0.0 %
0.0 %

4.3
4.6
3.0
2.6
2.1
2.1

3.1
3.9
3.0
2.8
1.9
2.0

Inventory

Months of Inventory (Implied)
Based On ->
December

Boulder
Boulder AD
Lafayette
Longmont
Louisville
Superior

HouseEinstein.com

2.6
3.1
3.9
2.8
1.3
1.7

ph: 303 746 6896

8
HOUSE EINSTEIN MARKET RESEARCH : JANUARY 2014

City of Boulder
Single Family Houses
(detached dwellings)

HouseEinstein.com

ph: 303 746 6896

9
Inventory

HOUSE EINSTEIN MARKET RESEARCH : JANUARY 2014

•

There was a normal long term
seasonal pattern for inventory
during 2013, despite the
ongoing shortage.

•

Inventory peaked in June
with 311 houses on the
market and bottomed in
December with just 123
homes available.

•

New listings are “like
throwing meat to wolves”
according to Chris Sweeney,
the Managing Broker of Pedal
to Properties.

HouseEinstein.com

ph: 303 746 6896

10
Sales Volume

HOUSE EINSTEIN MARKET RESEARCH : JANUARY 2014

•

Sales volume also followed a
normal seasonal pattern
during 2013.

•

On average, peak sales
volume occurs in June but
was pushed to July this year.

•

Note the small spike in sales
volume during October, likely
the result of delayed closings
caused by the historic flood.

•

47 houses closed during
December, precisely the long
term average for the month.

HouseEinstein.com

ph: 303 746 6896

11
Sales Volume

HOUSE EINSTEIN MARKET RESEARCH : JANUARY 2014

•

In a small market like Boulder,
it’s important to look at data from
longer periods of time than a
single month to establish a trend.

•

The accompanying chart shows
cumulative sales volume over the
past six and twelve months,
ending in December.

•

According to BARA (chart),
volume increased 4.3% during
the twelve month period, year
over year. Combining data from
both MLS systems shows a
12.2% increase in annual
volume.

•

A much larger spike occurred in
2012, with 25.9% increase in
annual sales volume from the
prior year.

HouseEinstein.com

ph: 303 746 6896

12
Absorption

HOUSE EINSTEIN MARKET RESEARCH : JANUARY 2014

•

Absorption remained highly
elevated during the full twelve
months of 2013, with a
noticeable lack of volatility from
March through August.

•

For sellers with less than perfect
properties, high absorption is a
good thing. It will lead buyers to
even consider homes with
deferred maintenance and in
poor locations.

•

For buyers, high absorption
means intense competition for
the most desirable homes. The
best approach is to work with an
experienced Buyer’s Agent who
will help you understand the
market and move aggressively
when the right property becomes
available.

Note: Absorption is the percentage of inventory sold in a given period of time.

HouseEinstein.com

ph: 303 746 6896

13
Days to Offer

HOUSE EINSTEIN MARKET RESEARCH : JANUARY 2014

•

This chart shows average days to
offer for deals that closed during
the month.

•

Note that sales which close
during January and February are
often properties that have been
on the market for a long time,
driving the average DTO higher.

•

The summer months are, on
average, the period with the
lowest DTO. While selection is
also highest during summer,
competition between buyers is
more intense.

•

DTO during 2013 (red line)
remained well below average
even during the shoulder
seasons. Buyers and sellers
should plan accordingly.

HouseEinstein.com

ph: 303 746 6896

14
Price Range Analysis

HOUSE EINSTEIN MARKET RESEARCH : JANUARY 2014

•

This chart shows the change in
sales volume by price range,
2013 vs 2012.

•

Sales volume fell dramatically for
entry level homes (priced below
$400,00).

•

The mid range experienced low
to moderate increases in sales
volume.

•

The $1.0MM to $2.0MM segment
saw only a mild increase.

•

The most dramatic change
occurred for homes valued at
$2.0MM or more, with a 333%
increase in sales volume.

HouseEinstein.com

ph: 303 746 6896

15
HOUSE EINSTEIN MARKET RESEARCH : JANUARY 2014

City of Boulder
Town Homes and Condos
(attached dwellings)

HouseEinstein.com

ph: 303 746 6896

16
Sales Volume

HOUSE EINSTEIN MARKET RESEARCH : JANUARY 2014

•

Sales followed a fairly typical
pattern during 2013 (red
line) compared to the long
term average (shaded area).

•

An unusual dip in sales
volume occurred in June,
followed by a slightly
elevated July, August, and
September.

•

40 condos and town homes
closed during December, up
21% from the preceding
month but a decrease of 9%
from last December.

HouseEinstein.com

ph: 303 746 6896

17
Sales Volume

HOUSE EINSTEIN MARKET RESEARCH : JANUARY 2014

•

Sales volume reached 715
units during 2013 (on the
IRES MLS), the highest level
since 2007. This represents
a 12.6% increase from 2012.

•

If both MLS systems are
considered, sales volume
reached 804 units – an
increase of 31.6%.

•

Increasing sales volume
during a period of record low
inventory is a very strong
market signal for an upward
movement in prices.

HouseEinstein.com

ph: 303 746 6896

18
Inventory

HOUSE EINSTEIN MARKET RESEARCH : JANUARY 2014

•

Inventory peaked early
during 2013, reaching a high
of 250 units.

•

Last year’s peak was less
than half of the average
peak inventory.

•

Just 125 units were on the
market in December, 24%
below last year and a new
record low.

•

Inventory will rise through
the spring, but it remains
shocking below the long
term average.

HouseEinstein.com

ph: 303 746 6896

19
Absorption

HOUSE EINSTEIN MARKET RESEARCH : JANUARY 2014

•

Absorption was well above
the long term average
throughout 2013, reaching a
peak of 42% in August.

•

Absorption ranged from 1.9x
to 2.6x the long term
average during 2013.
There is no shortage of
demand for attached
dwellings in Boulder.

•

Demand was not equal for
all property types and price
ranges. See slide 22 for
sales volume by price range.

Note: Absorption is the percentage of inventory sold in a given period of time.

HouseEinstein.com

ph: 303 746 6896

20
Days to Offer

HOUSE EINSTEIN MARKET RESEARCH : JANUARY 2014

•

Deals that closed during
December were on the market
for an average of 70 days before
receiving an acceptable offer.
This is 34% below the long term
average for the month.

•

As the chart shows, days to offer
was well below average
throughout the year, reaching a
bottom in September.

•

Keep in mind this the average.
Marketed well, the most
desirable properties were under
contract within a few days of
hitting the MLS during 2013.

HouseEinstein.com

ph: 303 746 6896

21
Price Range Analysis
This chart shows annual change
in sold volume by price range.

•

HOUSE EINSTEIN MARKET RESEARCH : JANUARY 2014

•

Keep in mind that nearly 80% of
the market is priced below
$300,000. There is far greater
depth of market at the lower end
but this analysis suggests the
change in demand was greatest
at the higher end.

•

Record high absorption would
have likely driven sales volume
much higher across the market if
additional inventory had become
available. In other words, the
reason that the volume of sales
fell below $100,000 was due to
the inventory shortage– not a
lack of buyer interest.

HouseEinstein.com

ph: 303 746 6896

22
Lessons from the Trenches

HOUSE EINSTEIN MARKET RESEARCH : JANUARY 2014

•

In many ways, last year’s market
was a dream for sellers.
Professionally marketed properties
sold well and even marginal real
estate attracted buyer interest.

•

In some cases, sellers left money on
the table by not allowing adequate
time for the full pool of potential
bidders to view the property.

•

Buyers Agents were forced to be
vigilant and responsive to new
listings. With little leverage on
price, smart buyers negotiated on
inspection and appraisal
contingencies in order to win bidding
wars.

•

In this market, it’s important to
discuss and agree on negotiation
tactics well in advance of writing (or
receiving) offers. This cannot be
over-emphasized. Talk to your
agent for details.

HouseEinstein.com

ph: 303 746 6896

23
Read Up! Recent Articles From Our Blog
The Top 10 House Sales in Boulder
HOUSE EINSTEIN MARKET RESEARCH : JANUARY 2014

Don’t Blow the Negotiation [Strategy]
Contractors, Competence, and the
One Strike Out Policy
Fresh Boulder Listings, Get ‘Em Hot

Image: mkhmarketing

HouseEinstein.com

ph: 303 746 6896

24
Get A Great Deal

HOUSE EINSTEIN MARKET RESEARCH : JANUARY 2014

•

Buying and selling real estate is one of life’s largest
financial decisions. It’s not just an important
investment, it’s where your family and friends will
gather for many years and memories will be made.
Make a smarter decision, get a professional advisor.

•

At Realty Unique, we love to negotiate. Give us a
call. We can advise you on current market
conditions, help you find your dream home, or get
the most value from the sale of your property.

•

We work with buyers and sellers – long time
residents and those relocating to Boulder.

Image Johnny Goldstein

HouseEinstein.com

ph: 303 746 6896

25

More Related Content

Viewers also liked

Clipping 1 Alpen Park 2009
Clipping 1 Alpen Park 2009Clipping 1 Alpen Park 2009
Clipping 1 Alpen Park 2009Agência DUE
 
Three digital trends for the new decade by steve rubel
Three digital trends for the new decade by steve rubelThree digital trends for the new decade by steve rubel
Three digital trends for the new decade by steve rubelEdelman Japan
 
Heteren 17 mei kansen voor horecaondernemers
Heteren 17 mei kansen voor horecaondernemersHeteren 17 mei kansen voor horecaondernemers
Heteren 17 mei kansen voor horecaondernemersAl Sauerfield
 
Sample presentation
Sample presentationSample presentation
Sample presentationSarah Rainey
 
Evernote - En Swiss army knife for alla som vill arbeta smartare
Evernote - En Swiss army knife for alla som vill arbeta smartareEvernote - En Swiss army knife for alla som vill arbeta smartare
Evernote - En Swiss army knife for alla som vill arbeta smartareAnders Sporring
 
Clipping mundo a Vapor 2010 02
Clipping mundo a Vapor 2010 02Clipping mundo a Vapor 2010 02
Clipping mundo a Vapor 2010 02Agência DUE
 
Presentatie KHN Social Media
Presentatie KHN Social MediaPresentatie KHN Social Media
Presentatie KHN Social MediaAl Sauerfield
 
Olivia paige hall powerpoint
Olivia paige hall powerpointOlivia paige hall powerpoint
Olivia paige hall powerpointguest29f65ff5
 
Boulder Real Estate Market Conditions - November 2013
Boulder Real Estate Market Conditions - November 2013Boulder Real Estate Market Conditions - November 2013
Boulder Real Estate Market Conditions - November 2013oparvez
 

Viewers also liked (17)

Clipping 1 Alpen Park 2009
Clipping 1 Alpen Park 2009Clipping 1 Alpen Park 2009
Clipping 1 Alpen Park 2009
 
Three digital trends for the new decade by steve rubel
Three digital trends for the new decade by steve rubelThree digital trends for the new decade by steve rubel
Three digital trends for the new decade by steve rubel
 
Seniorsurfdagen
SeniorsurfdagenSeniorsurfdagen
Seniorsurfdagen
 
10 Hottest Web-Design Trends | Keyideas Infotech
10 Hottest Web-Design Trends | Keyideas Infotech10 Hottest Web-Design Trends | Keyideas Infotech
10 Hottest Web-Design Trends | Keyideas Infotech
 
K Voor D H 2.2 Ext
K Voor D H 2.2 ExtK Voor D H 2.2 Ext
K Voor D H 2.2 Ext
 
Representation
RepresentationRepresentation
Representation
 
Heteren 17 mei kansen voor horecaondernemers
Heteren 17 mei kansen voor horecaondernemersHeteren 17 mei kansen voor horecaondernemers
Heteren 17 mei kansen voor horecaondernemers
 
Sample presentation
Sample presentationSample presentation
Sample presentation
 
Evernote - En Swiss army knife for alla som vill arbeta smartare
Evernote - En Swiss army knife for alla som vill arbeta smartareEvernote - En Swiss army knife for alla som vill arbeta smartare
Evernote - En Swiss army knife for alla som vill arbeta smartare
 
6 Ingredients for a Good eCommerce Blog | Keyideas Infotech
6 Ingredients for a Good eCommerce Blog | Keyideas Infotech6 Ingredients for a Good eCommerce Blog | Keyideas Infotech
6 Ingredients for a Good eCommerce Blog | Keyideas Infotech
 
color marrón con are y PDI
color marrón con are y PDIcolor marrón con are y PDI
color marrón con are y PDI
 
Clipping mundo a Vapor 2010 02
Clipping mundo a Vapor 2010 02Clipping mundo a Vapor 2010 02
Clipping mundo a Vapor 2010 02
 
Presentatie KHN Social Media
Presentatie KHN Social MediaPresentatie KHN Social Media
Presentatie KHN Social Media
 
What to Look for When hiring a Web Development Company
What to Look for When hiring a Web Development CompanyWhat to Look for When hiring a Web Development Company
What to Look for When hiring a Web Development Company
 
Olivia paige hall powerpoint
Olivia paige hall powerpointOlivia paige hall powerpoint
Olivia paige hall powerpoint
 
Ideeen kalender 2013
Ideeen kalender 2013Ideeen kalender 2013
Ideeen kalender 2013
 
Boulder Real Estate Market Conditions - November 2013
Boulder Real Estate Market Conditions - November 2013Boulder Real Estate Market Conditions - November 2013
Boulder Real Estate Market Conditions - November 2013
 

More from oparvez

The August Silver Fern Report (Boulder Real Estate)
The August Silver Fern Report (Boulder Real Estate)The August Silver Fern Report (Boulder Real Estate)
The August Silver Fern Report (Boulder Real Estate)oparvez
 
The Silver Fern Report - Boulder Real Estate Analysis
The Silver Fern Report - Boulder Real Estate AnalysisThe Silver Fern Report - Boulder Real Estate Analysis
The Silver Fern Report - Boulder Real Estate Analysisoparvez
 
The Silver Fern Report - January 2011
The Silver Fern Report - January 2011The Silver Fern Report - January 2011
The Silver Fern Report - January 2011oparvez
 
Boulder Real Estate Research
Boulder Real Estate ResearchBoulder Real Estate Research
Boulder Real Estate Researchoparvez
 
The Silver Fern Report - July 2010
The Silver Fern Report - July 2010The Silver Fern Report - July 2010
The Silver Fern Report - July 2010oparvez
 
The Silver Fern Report - June 2010
The Silver Fern Report - June 2010The Silver Fern Report - June 2010
The Silver Fern Report - June 2010oparvez
 
Sf report april 2010
Sf report april  2010Sf report april  2010
Sf report april 2010oparvez
 

More from oparvez (7)

The August Silver Fern Report (Boulder Real Estate)
The August Silver Fern Report (Boulder Real Estate)The August Silver Fern Report (Boulder Real Estate)
The August Silver Fern Report (Boulder Real Estate)
 
The Silver Fern Report - Boulder Real Estate Analysis
The Silver Fern Report - Boulder Real Estate AnalysisThe Silver Fern Report - Boulder Real Estate Analysis
The Silver Fern Report - Boulder Real Estate Analysis
 
The Silver Fern Report - January 2011
The Silver Fern Report - January 2011The Silver Fern Report - January 2011
The Silver Fern Report - January 2011
 
Boulder Real Estate Research
Boulder Real Estate ResearchBoulder Real Estate Research
Boulder Real Estate Research
 
The Silver Fern Report - July 2010
The Silver Fern Report - July 2010The Silver Fern Report - July 2010
The Silver Fern Report - July 2010
 
The Silver Fern Report - June 2010
The Silver Fern Report - June 2010The Silver Fern Report - June 2010
The Silver Fern Report - June 2010
 
Sf report april 2010
Sf report april  2010Sf report april  2010
Sf report april 2010
 

Recently uploaded

Commercial Lots for Sale - Pederson Crossing Blvd., DeForest,WI
Commercial Lots for Sale - Pederson Crossing Blvd., DeForest,WICommercial Lots for Sale - Pederson Crossing Blvd., DeForest,WI
Commercial Lots for Sale - Pederson Crossing Blvd., DeForest,WILee & Associates of Madison, WI
 
Evolving Work Trends Require New-age Businesses to Design Thoughtful Workspac...
Evolving Work Trends Require New-age Businesses to Design Thoughtful Workspac...Evolving Work Trends Require New-age Businesses to Design Thoughtful Workspac...
Evolving Work Trends Require New-age Businesses to Design Thoughtful Workspac...GMRAerocityHyderabad
 
Shapoorji Pallonji Codename Evolve Pine Bangalore.pdf
Shapoorji Pallonji Codename Evolve Pine Bangalore.pdfShapoorji Pallonji Codename Evolve Pine Bangalore.pdf
Shapoorji Pallonji Codename Evolve Pine Bangalore.pdfashiyadav24
 
K Raheja Amaltis Sion Mumbai | A Return To Better Living
K Raheja Amaltis Sion Mumbai | A Return To Better LivingK Raheja Amaltis Sion Mumbai | A Return To Better Living
K Raheja Amaltis Sion Mumbai | A Return To Better Livingaidasheikh47
 
Acqua Eden Bhutani Goa Brochure Download
Acqua Eden Bhutani Goa Brochure DownloadAcqua Eden Bhutani Goa Brochure Download
Acqua Eden Bhutani Goa Brochure DownloadMKBInfotech
 
Anshul Uruli Kanchan Pune E-Brochure.pdf
Anshul Uruli Kanchan Pune  E-Brochure.pdfAnshul Uruli Kanchan Pune  E-Brochure.pdf
Anshul Uruli Kanchan Pune E-Brochure.pdfManishSaxena95
 
LCAR Unit 15 - Agency in Real Estate - 14th Edition Revised
LCAR Unit 15 - Agency in Real Estate - 14th Edition RevisedLCAR Unit 15 - Agency in Real Estate - 14th Edition Revised
LCAR Unit 15 - Agency in Real Estate - 14th Edition RevisedTom Blefko
 
Mahindra Lifespaces Kandivali East | Expansive spaces for your family
Mahindra Lifespaces Kandivali East | Expansive spaces for your familyMahindra Lifespaces Kandivali East | Expansive spaces for your family
Mahindra Lifespaces Kandivali East | Expansive spaces for your familyaidasheikh47
 
Common House Flipping Mistakes and How to Avoid Them
Common House Flipping Mistakes and How to Avoid ThemCommon House Flipping Mistakes and How to Avoid Them
Common House Flipping Mistakes and How to Avoid ThemHampton Luzak
 
AIPL Joy District Sector 88, In Gurgaon.pdf
AIPL Joy District  Sector 88,  In Gurgaon.pdfAIPL Joy District  Sector 88,  In Gurgaon.pdf
AIPL Joy District Sector 88, In Gurgaon.pdfbhattrishabh270
 
Experience Tranquility: Serenity in Springfield, Idaho's Architectural Animat...
Experience Tranquility: Serenity in Springfield, Idaho's Architectural Animat...Experience Tranquility: Serenity in Springfield, Idaho's Architectural Animat...
Experience Tranquility: Serenity in Springfield, Idaho's Architectural Animat...Yantram Animation Studio Corporation
 
LCAR Unit 14 - Real Estate Brokerage - 14th Edition Revised
LCAR Unit 14 - Real Estate Brokerage - 14th Edition RevisedLCAR Unit 14 - Real Estate Brokerage - 14th Edition Revised
LCAR Unit 14 - Real Estate Brokerage - 14th Edition RevisedTom Blefko
 
ALSTINE -300 (Aluminium Coating Chemical)
ALSTINE -300 (Aluminium Coating Chemical)ALSTINE -300 (Aluminium Coating Chemical)
ALSTINE -300 (Aluminium Coating Chemical)JAIBAN ORGANICS
 
SVN Live 3.25.24 Weekly Property Broadcast
SVN Live 3.25.24 Weekly Property BroadcastSVN Live 3.25.24 Weekly Property Broadcast
SVN Live 3.25.24 Weekly Property BroadcastSVN International Corp.
 
Kalpataru Jade Skyline Baner Pune | A New Way Of Living At An Affordable Price
Kalpataru Jade Skyline Baner Pune | A New Way Of Living At An Affordable PriceKalpataru Jade Skyline Baner Pune | A New Way Of Living At An Affordable Price
Kalpataru Jade Skyline Baner Pune | A New Way Of Living At An Affordable Priceaidasheikh47
 
REALTORS Land Institute 2023 Land Market Survey
REALTORS Land Institute 2023 Land Market SurveyREALTORS Land Institute 2023 Land Market Survey
REALTORS Land Institute 2023 Land Market SurveyREALTORS® Land Institute
 
Birla-Alokya Whitefield, Banglore-e-Brochure.pdf
Birla-Alokya Whitefield, Banglore-e-Brochure.pdfBirla-Alokya Whitefield, Banglore-e-Brochure.pdf
Birla-Alokya Whitefield, Banglore-e-Brochure.pdffaheemali990101
 
4 & 5 BHK Spacious Apartments for sale in Anamika High Point, Off SG Highway ...
4 & 5 BHK Spacious Apartments for sale in Anamika High Point, Off SG Highway ...4 & 5 BHK Spacious Apartments for sale in Anamika High Point, Off SG Highway ...
4 & 5 BHK Spacious Apartments for sale in Anamika High Point, Off SG Highway ...RE/MAX Realty Solutions
 
LCAR Unit 13 - The Real Estate Business - 14th Edition Revised
LCAR Unit 13 - The Real Estate Business - 14th Edition RevisedLCAR Unit 13 - The Real Estate Business - 14th Edition Revised
LCAR Unit 13 - The Real Estate Business - 14th Edition RevisedTom Blefko
 
4S Sector 59 In Gurugram | Invest, Nest, Rest
4S Sector 59  In Gurugram | Invest, Nest, Rest4S Sector 59  In Gurugram | Invest, Nest, Rest
4S Sector 59 In Gurugram | Invest, Nest, Restbhattrishabh270
 

Recently uploaded (20)

Commercial Lots for Sale - Pederson Crossing Blvd., DeForest,WI
Commercial Lots for Sale - Pederson Crossing Blvd., DeForest,WICommercial Lots for Sale - Pederson Crossing Blvd., DeForest,WI
Commercial Lots for Sale - Pederson Crossing Blvd., DeForest,WI
 
Evolving Work Trends Require New-age Businesses to Design Thoughtful Workspac...
Evolving Work Trends Require New-age Businesses to Design Thoughtful Workspac...Evolving Work Trends Require New-age Businesses to Design Thoughtful Workspac...
Evolving Work Trends Require New-age Businesses to Design Thoughtful Workspac...
 
Shapoorji Pallonji Codename Evolve Pine Bangalore.pdf
Shapoorji Pallonji Codename Evolve Pine Bangalore.pdfShapoorji Pallonji Codename Evolve Pine Bangalore.pdf
Shapoorji Pallonji Codename Evolve Pine Bangalore.pdf
 
K Raheja Amaltis Sion Mumbai | A Return To Better Living
K Raheja Amaltis Sion Mumbai | A Return To Better LivingK Raheja Amaltis Sion Mumbai | A Return To Better Living
K Raheja Amaltis Sion Mumbai | A Return To Better Living
 
Acqua Eden Bhutani Goa Brochure Download
Acqua Eden Bhutani Goa Brochure DownloadAcqua Eden Bhutani Goa Brochure Download
Acqua Eden Bhutani Goa Brochure Download
 
Anshul Uruli Kanchan Pune E-Brochure.pdf
Anshul Uruli Kanchan Pune  E-Brochure.pdfAnshul Uruli Kanchan Pune  E-Brochure.pdf
Anshul Uruli Kanchan Pune E-Brochure.pdf
 
LCAR Unit 15 - Agency in Real Estate - 14th Edition Revised
LCAR Unit 15 - Agency in Real Estate - 14th Edition RevisedLCAR Unit 15 - Agency in Real Estate - 14th Edition Revised
LCAR Unit 15 - Agency in Real Estate - 14th Edition Revised
 
Mahindra Lifespaces Kandivali East | Expansive spaces for your family
Mahindra Lifespaces Kandivali East | Expansive spaces for your familyMahindra Lifespaces Kandivali East | Expansive spaces for your family
Mahindra Lifespaces Kandivali East | Expansive spaces for your family
 
Common House Flipping Mistakes and How to Avoid Them
Common House Flipping Mistakes and How to Avoid ThemCommon House Flipping Mistakes and How to Avoid Them
Common House Flipping Mistakes and How to Avoid Them
 
AIPL Joy District Sector 88, In Gurgaon.pdf
AIPL Joy District  Sector 88,  In Gurgaon.pdfAIPL Joy District  Sector 88,  In Gurgaon.pdf
AIPL Joy District Sector 88, In Gurgaon.pdf
 
Experience Tranquility: Serenity in Springfield, Idaho's Architectural Animat...
Experience Tranquility: Serenity in Springfield, Idaho's Architectural Animat...Experience Tranquility: Serenity in Springfield, Idaho's Architectural Animat...
Experience Tranquility: Serenity in Springfield, Idaho's Architectural Animat...
 
LCAR Unit 14 - Real Estate Brokerage - 14th Edition Revised
LCAR Unit 14 - Real Estate Brokerage - 14th Edition RevisedLCAR Unit 14 - Real Estate Brokerage - 14th Edition Revised
LCAR Unit 14 - Real Estate Brokerage - 14th Edition Revised
 
ALSTINE -300 (Aluminium Coating Chemical)
ALSTINE -300 (Aluminium Coating Chemical)ALSTINE -300 (Aluminium Coating Chemical)
ALSTINE -300 (Aluminium Coating Chemical)
 
SVN Live 3.25.24 Weekly Property Broadcast
SVN Live 3.25.24 Weekly Property BroadcastSVN Live 3.25.24 Weekly Property Broadcast
SVN Live 3.25.24 Weekly Property Broadcast
 
Kalpataru Jade Skyline Baner Pune | A New Way Of Living At An Affordable Price
Kalpataru Jade Skyline Baner Pune | A New Way Of Living At An Affordable PriceKalpataru Jade Skyline Baner Pune | A New Way Of Living At An Affordable Price
Kalpataru Jade Skyline Baner Pune | A New Way Of Living At An Affordable Price
 
REALTORS Land Institute 2023 Land Market Survey
REALTORS Land Institute 2023 Land Market SurveyREALTORS Land Institute 2023 Land Market Survey
REALTORS Land Institute 2023 Land Market Survey
 
Birla-Alokya Whitefield, Banglore-e-Brochure.pdf
Birla-Alokya Whitefield, Banglore-e-Brochure.pdfBirla-Alokya Whitefield, Banglore-e-Brochure.pdf
Birla-Alokya Whitefield, Banglore-e-Brochure.pdf
 
4 & 5 BHK Spacious Apartments for sale in Anamika High Point, Off SG Highway ...
4 & 5 BHK Spacious Apartments for sale in Anamika High Point, Off SG Highway ...4 & 5 BHK Spacious Apartments for sale in Anamika High Point, Off SG Highway ...
4 & 5 BHK Spacious Apartments for sale in Anamika High Point, Off SG Highway ...
 
LCAR Unit 13 - The Real Estate Business - 14th Edition Revised
LCAR Unit 13 - The Real Estate Business - 14th Edition RevisedLCAR Unit 13 - The Real Estate Business - 14th Edition Revised
LCAR Unit 13 - The Real Estate Business - 14th Edition Revised
 
4S Sector 59 In Gurugram | Invest, Nest, Rest
4S Sector 59  In Gurugram | Invest, Nest, Rest4S Sector 59  In Gurugram | Invest, Nest, Rest
4S Sector 59 In Gurugram | Invest, Nest, Rest
 

Annual Report on Boulder Real Estate [House Einstein]

  • 2. Market Research: Boulder an analysis of real estate market conditions in Boulder, Colorado January, 2014 Sponsored by:
  • 3. HOUSE EINSTEIN MARKET RESEARCH : JANUARY 2014 Legal This presentation was prepared exclusively for the benefit and use of the Realty Unique clients to assist their study of real estate market conditions. This presentation is for discussion purposes only and is incomplete without an in-person, oral presentation by Realty Unique. This presentation reflects opinions of prevailing market conditions on this date, which are subject to change. Realty Unique recommends careful and complete due diligence before buying or selling real estate or other investments. The following presentation is not to be construed as legal, tax, or investment advice. Realty Unique will not be held liable for investment decisions derived from this presentation. Previous market performance is not a guarantee of future results and there is financial risk associated with buying or selling property. Consult with your financial, legal, and real estate advisers before making an investment decision. The data in this presentation was obtained by private and public sources, without independent verification. HouseEinstein.com ph: 303 746 6896 3
  • 4. “You can’t make a smart real estate decision without knowing the facts about market conditions.” - Osman Parvez, Founder Realty Unique, LLC
  • 5. HOUSE EINSTEIN MARKET RESEARCH : JANUARY 2014 About Osman Parvez: Osman’s professional experience includes investment analysis, economic consulting, real estate development and investment banking. Prior to Realty Unique, he served as an Equities Research Associate for Kaufman Brothers, Research Director for Windwalker Real Estate, Associate Director for Capital Markets at Republic Financial and co-founder of Silver Fern Homes. Outside of real estate and investing, he loves being in the wilderness and has research experience studying the impacts of climate change. Osman holds an MBA in finance, a B.S. in biology and is a Certified Negotiation Expert (CNE). Email: osman@realtyunique.com ph: 303.746.6896 HouseEinstein.com ph: 303 746 6896 5
  • 6. HOUSE EINSTEIN MARKET RESEARCH : JANUARY 2014 A Note About The Data The following slides represent data from various sources, as cited. Understanding the limitations of each data source is important. Data from the Boulder Area Realtor Association (BARA) is based on the IRES MLS. This MLS contains the majority of real estate sales in Boulder, Longmont, and Louisville but not in others, where Metrolist has a large market share. The resulting potential error is unacceptably large in areas like Broomfield and Erie (see chart). If you see other analyses on area real estate conditions, confirm the data source. Please see An Open Letter to BARA. HouseEinstein.com ph: 303 746 6896 6
  • 7. HOUSE EINSTEIN MARKET RESEARCH : JANUARY 2014 Market Conditions Regional Overview HouseEinstein.com ph: 303 746 6896 7
  • 8. Regional Summary HOUSE EINSTEIN MARKET RESEARCH : JANUARY 2014 • • Inventory remains at record low levels throughout the region. Longmont, Boulder, and Boulder Attached Dwellings (AD) are experiencing about the same level of shortage. Months of Inventory, a metric based on sales volume relative to inventory, shows unbelievably low levels of inventory in Louisville and Superior. Experts believe about six months of inventory is normal in a healthy market. The new regional summary excludes Erie, Mountains, and Plains due to incomplete data from BARA. December YoY % Chg MoM % Change Absorption (Sold/Inv**) December YoY % Chg MoM % Change Boulder Boulder AD Lafayette Longmont Louisville Superior 123 125 54 173 20 15 (25.5)% (23.8)% 8.0 % (24.1)% (4.8)% (16.7)% (26.3)% (17.8)% (14.3)% (21.7)% (37.5)% (21.1)% Boulder Boulder AD Lafayette Longmont Louisville Superior 28.1% 26.3% 22.2% 28.1% 46.9% 47.4% 16.9 % 19.6 % (28.7)% 32.3 % 9.4 % 82.7 % 34.9 % 27.6 % (23.8)% (10.0)% 31.3 % 31.6 % Sold Volume December YoY % Chg MoM % Change Prev. Month 3 Mo. Avg Boulder Boulder AD Lafayette Longmont Louisville Superior 47 40 14 62 15 9 (9.6)% (9.1)% (26.3)% 10.7 % (16.7)% 28.6 % 20.5 % 21.2 % (33.3)% (27.9)% 0.0 % 0.0 % 4.3 4.6 3.0 2.6 2.1 2.1 3.1 3.9 3.0 2.8 1.9 2.0 Inventory Months of Inventory (Implied) Based On -> December Boulder Boulder AD Lafayette Longmont Louisville Superior HouseEinstein.com 2.6 3.1 3.9 2.8 1.3 1.7 ph: 303 746 6896 8
  • 9. HOUSE EINSTEIN MARKET RESEARCH : JANUARY 2014 City of Boulder Single Family Houses (detached dwellings) HouseEinstein.com ph: 303 746 6896 9
  • 10. Inventory HOUSE EINSTEIN MARKET RESEARCH : JANUARY 2014 • There was a normal long term seasonal pattern for inventory during 2013, despite the ongoing shortage. • Inventory peaked in June with 311 houses on the market and bottomed in December with just 123 homes available. • New listings are “like throwing meat to wolves” according to Chris Sweeney, the Managing Broker of Pedal to Properties. HouseEinstein.com ph: 303 746 6896 10
  • 11. Sales Volume HOUSE EINSTEIN MARKET RESEARCH : JANUARY 2014 • Sales volume also followed a normal seasonal pattern during 2013. • On average, peak sales volume occurs in June but was pushed to July this year. • Note the small spike in sales volume during October, likely the result of delayed closings caused by the historic flood. • 47 houses closed during December, precisely the long term average for the month. HouseEinstein.com ph: 303 746 6896 11
  • 12. Sales Volume HOUSE EINSTEIN MARKET RESEARCH : JANUARY 2014 • In a small market like Boulder, it’s important to look at data from longer periods of time than a single month to establish a trend. • The accompanying chart shows cumulative sales volume over the past six and twelve months, ending in December. • According to BARA (chart), volume increased 4.3% during the twelve month period, year over year. Combining data from both MLS systems shows a 12.2% increase in annual volume. • A much larger spike occurred in 2012, with 25.9% increase in annual sales volume from the prior year. HouseEinstein.com ph: 303 746 6896 12
  • 13. Absorption HOUSE EINSTEIN MARKET RESEARCH : JANUARY 2014 • Absorption remained highly elevated during the full twelve months of 2013, with a noticeable lack of volatility from March through August. • For sellers with less than perfect properties, high absorption is a good thing. It will lead buyers to even consider homes with deferred maintenance and in poor locations. • For buyers, high absorption means intense competition for the most desirable homes. The best approach is to work with an experienced Buyer’s Agent who will help you understand the market and move aggressively when the right property becomes available. Note: Absorption is the percentage of inventory sold in a given period of time. HouseEinstein.com ph: 303 746 6896 13
  • 14. Days to Offer HOUSE EINSTEIN MARKET RESEARCH : JANUARY 2014 • This chart shows average days to offer for deals that closed during the month. • Note that sales which close during January and February are often properties that have been on the market for a long time, driving the average DTO higher. • The summer months are, on average, the period with the lowest DTO. While selection is also highest during summer, competition between buyers is more intense. • DTO during 2013 (red line) remained well below average even during the shoulder seasons. Buyers and sellers should plan accordingly. HouseEinstein.com ph: 303 746 6896 14
  • 15. Price Range Analysis HOUSE EINSTEIN MARKET RESEARCH : JANUARY 2014 • This chart shows the change in sales volume by price range, 2013 vs 2012. • Sales volume fell dramatically for entry level homes (priced below $400,00). • The mid range experienced low to moderate increases in sales volume. • The $1.0MM to $2.0MM segment saw only a mild increase. • The most dramatic change occurred for homes valued at $2.0MM or more, with a 333% increase in sales volume. HouseEinstein.com ph: 303 746 6896 15
  • 16. HOUSE EINSTEIN MARKET RESEARCH : JANUARY 2014 City of Boulder Town Homes and Condos (attached dwellings) HouseEinstein.com ph: 303 746 6896 16
  • 17. Sales Volume HOUSE EINSTEIN MARKET RESEARCH : JANUARY 2014 • Sales followed a fairly typical pattern during 2013 (red line) compared to the long term average (shaded area). • An unusual dip in sales volume occurred in June, followed by a slightly elevated July, August, and September. • 40 condos and town homes closed during December, up 21% from the preceding month but a decrease of 9% from last December. HouseEinstein.com ph: 303 746 6896 17
  • 18. Sales Volume HOUSE EINSTEIN MARKET RESEARCH : JANUARY 2014 • Sales volume reached 715 units during 2013 (on the IRES MLS), the highest level since 2007. This represents a 12.6% increase from 2012. • If both MLS systems are considered, sales volume reached 804 units – an increase of 31.6%. • Increasing sales volume during a period of record low inventory is a very strong market signal for an upward movement in prices. HouseEinstein.com ph: 303 746 6896 18
  • 19. Inventory HOUSE EINSTEIN MARKET RESEARCH : JANUARY 2014 • Inventory peaked early during 2013, reaching a high of 250 units. • Last year’s peak was less than half of the average peak inventory. • Just 125 units were on the market in December, 24% below last year and a new record low. • Inventory will rise through the spring, but it remains shocking below the long term average. HouseEinstein.com ph: 303 746 6896 19
  • 20. Absorption HOUSE EINSTEIN MARKET RESEARCH : JANUARY 2014 • Absorption was well above the long term average throughout 2013, reaching a peak of 42% in August. • Absorption ranged from 1.9x to 2.6x the long term average during 2013. There is no shortage of demand for attached dwellings in Boulder. • Demand was not equal for all property types and price ranges. See slide 22 for sales volume by price range. Note: Absorption is the percentage of inventory sold in a given period of time. HouseEinstein.com ph: 303 746 6896 20
  • 21. Days to Offer HOUSE EINSTEIN MARKET RESEARCH : JANUARY 2014 • Deals that closed during December were on the market for an average of 70 days before receiving an acceptable offer. This is 34% below the long term average for the month. • As the chart shows, days to offer was well below average throughout the year, reaching a bottom in September. • Keep in mind this the average. Marketed well, the most desirable properties were under contract within a few days of hitting the MLS during 2013. HouseEinstein.com ph: 303 746 6896 21
  • 22. Price Range Analysis This chart shows annual change in sold volume by price range. • HOUSE EINSTEIN MARKET RESEARCH : JANUARY 2014 • Keep in mind that nearly 80% of the market is priced below $300,000. There is far greater depth of market at the lower end but this analysis suggests the change in demand was greatest at the higher end. • Record high absorption would have likely driven sales volume much higher across the market if additional inventory had become available. In other words, the reason that the volume of sales fell below $100,000 was due to the inventory shortage– not a lack of buyer interest. HouseEinstein.com ph: 303 746 6896 22
  • 23. Lessons from the Trenches HOUSE EINSTEIN MARKET RESEARCH : JANUARY 2014 • In many ways, last year’s market was a dream for sellers. Professionally marketed properties sold well and even marginal real estate attracted buyer interest. • In some cases, sellers left money on the table by not allowing adequate time for the full pool of potential bidders to view the property. • Buyers Agents were forced to be vigilant and responsive to new listings. With little leverage on price, smart buyers negotiated on inspection and appraisal contingencies in order to win bidding wars. • In this market, it’s important to discuss and agree on negotiation tactics well in advance of writing (or receiving) offers. This cannot be over-emphasized. Talk to your agent for details. HouseEinstein.com ph: 303 746 6896 23
  • 24. Read Up! Recent Articles From Our Blog The Top 10 House Sales in Boulder HOUSE EINSTEIN MARKET RESEARCH : JANUARY 2014 Don’t Blow the Negotiation [Strategy] Contractors, Competence, and the One Strike Out Policy Fresh Boulder Listings, Get ‘Em Hot Image: mkhmarketing HouseEinstein.com ph: 303 746 6896 24
  • 25. Get A Great Deal HOUSE EINSTEIN MARKET RESEARCH : JANUARY 2014 • Buying and selling real estate is one of life’s largest financial decisions. It’s not just an important investment, it’s where your family and friends will gather for many years and memories will be made. Make a smarter decision, get a professional advisor. • At Realty Unique, we love to negotiate. Give us a call. We can advise you on current market conditions, help you find your dream home, or get the most value from the sale of your property. • We work with buyers and sellers – long time residents and those relocating to Boulder. Image Johnny Goldstein HouseEinstein.com ph: 303 746 6896 25